Chapter 2

Question 1

Systems the measure, record, and report product costs. THey are used to accumulate product cost information so that manager can measure how much it costs to produce each unit of a product.

Answer 1

Cost accounting systems

Question 2

What are the two types of cost accounting systems

Answer 2

job order costing systems
process costing systems

Question 3

Cost accounting system that accumulates costs for each unique batch or job.

Answer 3

Job order costing system

Question 4

Cost accounting system that accumulates the costs of each process needed to complete eth product over a period of time.

Answer 4

Process costing system

Question 5

What are the four steps to track product costs

Answer 5

Accumulate
assign
allocate
adjust

Question 6

A document that shows direct materials, direct labor, and manufacturing overhead cost for each individual job.

Answer 6

job cost record

Question 7

A ledger that contains the details of a general ledger account. This allows for better control of inventory because it helps track each type of material used in production.

Answer 7

subsidiary ledger

Question 8

A document that request the transfer of raw materials to the production floor

Answer 8

materials requisition

Question 9

indicates the amount of time spent on each job

Answer 9

labor time record

Question 10

Estimated OH cost per unit of the allocation base, created at the beginning of the accounting period

Answer 10

Predetermined overhead cost = total estimated overhead costs/total estimated quantity of the overhead allocation base

Question 11

A denominator that links indirect/OH cost to an object. Ideally it’s the primary cost driver of manufacturing OH

Answer 11

allocation base

Question 12

The primary factor that drives cost. Name and list three examples

Answer 12

Cost driver
1. Direct labor hours
2. Direct labor cost
3. Machine hours